Tax-Haven Subsidiaries Are Typically Established in a Country That Can

question 62

Multiple Choice

Tax-haven subsidiaries are typically established in a country that can meet the following requirements:

• A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
• B) the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
• C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
• D) all of the above

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Definitions:

Frequent Urination

The need to urinate more often than usual, which may indicate health conditions like diabetes or urinary tract infections.

Increased Thirst

An elevated desire to drink fluids, which can be a symptom of dehydration or other medical conditions.

Good Cholesterol

High-density lipoprotein (HDL) that helps remove other forms of cholesterol from the bloodstream, thereby reducing the risk of heart disease.

Circulates

To move or flow in a path that returns to the point of origin, often referring to blood flow or airflow.